This project is based on the idea that Zappos Inc. decides to expand internationally to Nigeria, Africa. Our team had to go through the whole process and make a decision if it would be possible, profitable, worth it.
"Zappos Inc. Expansion to Nigeria" Part I Group Project
1. VIRGINIA INTERNATIONAL UNIVERISTY
EXPANSION TO
NIGERIA
MBA 616 International Marketing
Created by: Mariya Kolechyna, Harshesh Patel, Ricardo Abella, Aunyarat Oommie
2. CONTENTS
o INTRODUCTION
o ZAPPOS INC
o AFRICA AND NIGERIA
o ZAPPOS AND AFRICAN MARKET
o WHY NIGERIA?
o TRIBAL MARKETING CONCEPT
o PRODUCT IDENTIFICATION
o PRODUCT EXTENSION
o PRODUCT QUALIFICATION
o PRODUCT IMPLICATION
o CONCLUSION
3. INTRODUCTION
Zappos with its unique approach to
literally everything, from culture to
hiring process, is ready to “deliver
happiness” to Nigeria, Africa and to
take their fashionistas to a whole new
11. AFRICA as a CONTINENT
With a
2 largest
population of
continent in Covers about 1,030
the world in about 20% million people,
both area of Earth's accounts for
and total land about 20% of
the world's
area
population population
12.
13. NIGERIA
Africa's most populous country
155 million GDP was
people Muslim 50%, around $400
th Christians billion in
(about 1/6
40%, 2010, placing
of Africa’s the country
population Others 10% 32th in the
world ranking
14. 0-14
YEARS: 43
%
YOUTH
LITERACY
RATE
65 YEARS 15-64
(ENGLISH)
AND YEARS: 54
OVER: 3.1 STOOD AT %
% 76.3%
15. ZAPPOS INC AND AFRICAN MARKET
“I can die for shoes” Funke Akindele
16. WHY NIGERIA
Fast- Eager
Populous
growing hungry
country
economy market
Six key drivers depict this situation
18. 2. LARGEST CONSUMER MARKET IN AFRICA
155 million 8th world
EGYPT 74
ETHIOPIA 72 United Nations : 2050 390 M
CONGO 59
SOUTH AFRICA 47
SUDAN 39
TANZANIA 36
19. 3. EMERGING MEGACITIES
… changes in population dynamics, cultural norms, buying behaviors …
Traditional regional model
LAGOS (f.c.c.) 10
“ONE SIZE FITS ALL”
KANO 3
IBADAN 3
ABUJA (c.c.c) 2
“GO-TO-MARKET”
20. 4. GROWING LITERACY RATES AND e-COMERCE
0 - 14 years 43 %
15 - 64 years 54 %
Male 19.2 years
Female 19.3 years
Cell phone users
73 million Internet users
50 million
21. 5. ENTRY POINT TO AFRICAN MARKET
Africa has more than one-eighth of the total population of the world
47 %
West Africa Population
2nd
Sub-Sahara Africa Economy
22. 6. EASY CREATION OF TRENDS
GROWING ASPIRATIONAL BRAND-
SIZE BRANDS CONSCIOUS
OPEN UP OPPORTUNITIES TO CREATE NEW PATHS
Business models
Market channels
Sales programs
Product delivery systems
Customer satisfaction
23. Zappos Inc strategy for entering Nigeria will
be the following:
1. Creation of new website Zappos Nigeria
2. Establishment of the warehouse in Nigeria
3. Product: Imported world-known footwear
Domestic brands
“STAR – SHOE”
24. As Zappos we are looking for successful
fashion-forward women who are frequent
online media users and tech-savvy.
Our target social group is:
• Urban areas female industry
workers
• Age Group 18-40
• Online media users
• Household (family) income $
30 000 +
• Education: high school degree +
25. TARGET MARKET
… strong character
She is … … independent
… fashionable
… unique
… stylish … free
…b eautiful … unpredictable … passionate
37. PROCEDURE
SUBMISSION
COMMERCIAL
OF FORM “ M
VOICE
“
VAT TAXES ON
FOOTWEAR
38. PRODUCT IMPLICATIONS
Weak financial Energy
system shortage
Traditionalist Creation of
culture value
FIVE STRATEGIES
Potential customers
The Government
Activist groups
The press